446: Practical Tips For Encouraging Repeat High-Profit Clients

This Podcast Is Episode Number 446, And It's About Practical Tips For Encouraging Repeat High-Profit Clients

Many data support the idea that it's less costly, easier, and more efficient to encourage repeat customers than bring in new ones. Among the stats Hubspot lists are: that a 5% increase in customer retention is responsible for more than 25% increase in profit; repeat customers are nine times more likely to convert than first-time visitors, and a 2% increase in customer retention has a similar impact to your bottom line as reducing costs by 10%.

Understand The High-Profit Client - Most of them have personality traits commonly known as drivers - folks who are accustomed to getting things done quickly and efficiently. They do not mind paying professionals to service, repair, or build new construction projects related to their houses and commercial buildings.

Design and develop your internal customized systems and processes when and where it makes sense. As much as possible, when it is cheaper to buy something ready-made for a fraction of what it costs you to do-it-yourself then buy it. 

Systems, Systems, Systems - You need systems (a system is simply a collection of processes built upon an understanding of what works and each method has been tried and tested). Without systems or a desire to "wing it" and see what happens will bring out the animal in these people, and they have been known to cause construction business a great deal of harm and financial pain.

First, Design External Systems

For the money trail (contract amount, deposits, change orders, payments) For project milestones and projected completion dates (when change orders occur, update the completion date) Cause the least amount of grief and interruptions to their lives Ensure they make the fewest possible decisions (they make decisions all day long) To make sure nobody ever tries to "educate" them about construction (they don't care, that's why they hired you!)

Then, follow along these four practical tips to encourage your high-profit clients to keep coming back. 

1. Build relationships with clients

Take time to learn more about your customers.

Do they mention family members? Ask about their loved ones. Do they have particular concerns? For instance - too many cable cords around the house and they have small children. Keep track of their issues and be attentive to their needs. Recommend solutions that address their specific problems. Go the extra mile to show your customers they're important to you. 

Ask for their input, as well. They'll get to know your products and services and offer insights into what's working and what could be improved. If you engage them--and make changes based on their feedback--you'll develop a loyal customer base.

The more special your clients feel, the more likely they are to hire you again. They'll appreciate your thoughtfulness and value your service. 

2. Make it personal

Your loyal clients deserve communications that are more personal and less formal. Using impersonal emails for your more extensive email list is fine, but use more personal touches with your best customers. 

Phone them or suggest an in-person meeting if you want to let them know about an essential business-related matter. Keep track of important dates, as well. You can send gifts or cards to mark important occasions or to reach out. 

Make your best customers feel they stand out from the rest by being more personal with them. 

3. Share relevant information

Still, if you get to know your customers well, you can pass along articles, books, or other information that might interest them, even if it isn't related to your business. Newsletters are a great way to stay in touch with your customers and let them know what you're up to. It shows them you understand and you care. 

4. Remember your loyal clients

Businesses sometimes focus their attentions exclusively on new customers, forgetting about loyal and repeat customers. You need new customers to keep your business thriving; however, excluding long-term customers creates customer churn. 

It's great to offer new customers rewards and incentives, but that leaves existing customers feeling ignored. Offer your long-term customers bonuses for their loyalty. 

Final thoughts

The Key Here Is To Get In And Get Out Fast - And they will love you for it! The high-profit client has more money than time, so more than most people; their time is worth a lot more to them than you can imagine.

Encouraging repeat customers makes solid business sense. To be successful, you need a balance of new and long-term clients. This means building relationships with people, personalizing your attention, sharing relevant information, and remembering your loyal customers. 

A great product or service at a reasonable price might bring your customers in, but outstanding customer service that gives them a positive, memorable experience will keep them coming back. 

About The Author:

Sharie DeHart, QPA, is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or sharie@fasteasyaccounting.com